Karachi, August 2025 – The State Bank of Pakistan (SBP) has rolled out a new digital framework, the Performance Evaluation System for Investment Abroad (PESIA), aimed at streamlining and strengthening the monitoring of equity investments abroad (EIA). The initiative marks a significant step in enhancing transparency, regulatory compliance, and oversight of foreign equity transactions by Pakistani investors.
According to a circular issued by SBP, PESIA will serve as a centralized platform for Authorized Dealers (ADs) to report all EIA-related transactions via the State Bank’s Data Acquisition Portal (DAP). The system is designed with structured data files (DFS) that cover various aspects of investment abroad, enabling more comprehensive and accurate reporting.
The framework consists of ten data files, each dedicated to a specific category of information. These include approvals of equity investments (A1, A2, B, C), employee stock options and portfolio investments (D), inward and outward remittances, and details of investee entities. Additionally, a key element of the system will be performance reporting of overseas companies in which Pakistani entities hold equity stakes. The integration of these datasets aims to create a holistic view of outward equity flows and returns.
To assist stakeholders in navigating the new system, SBP has also published a detailed user manual. This guide provides instructions on reporting procedures, data entry requirements, and the mandatory issuance of “Investee Company Codes,” ensuring that reporting remains uniform across institutions.
Under PESIA, Authorized Dealers will have to comply with a strict reporting schedule. Monthly submissions of equity investment abroad transactions (DFS 1–9) must be filed by the fifth working day of each month. In addition, annual financial performance data of investee companies (DFS 10) must be submitted within three months of the end of the investee’s financial year.
SBP has also directed banks to reconcile historical data through a phased approach. In Phase I, all transactions from February 10, 2021, to July 31, 2025, must be reported by November 28, 2025. In Phase II, transactions predating February 9, 2021, are to be uploaded by February 28, 2026. Once both phases are completed, a compliance report endorsed by each AD’s Group Head Compliance must be submitted by March 5, 2026.
The central bank has underscored the importance of accuracy and timeliness in data reporting. Heads of EIA Units and Group Heads Compliance at banks will be held personally accountable for lapses. Any instances of non-compliance or submission of erroneous data may attract penalties or enforcement measures under the Foreign Exchange Regulation Act, 1947, as well as other relevant laws.
In its directive, SBP urged all Authorized Dealers to proactively inform their clients about the new reporting structure and ensure adherence without delay. By introducing PESIA, the central bank has reinforced its commitment to improving Pakistan’s financial reporting standards, aligning with international practices, and creating greater visibility into cross-border investments.
The system is expected to bring greater efficiency to regulatory oversight while enabling investors and regulators to track the performance of overseas equity investments more effectively.
